--- title: "AI Risk Engine: Underwriting AI Liability Insurance" url: "https://www.testudo.co/technology" description: "Testudo's AI Risk Engine powers AI liability insurance for generative AI, connecting US AI lawsuits, regulatory actions, and incidents into one live view." site: "Testudo" --- Technology # Sharper risk selection. Faster distribution. Testudo connects every AI lawsuit, regulatory action, incident, and deployment into one live view of exposure. [Read the Blog](https://www.testudo.co/insights) One Live View of AI Risk We track AI deployment across the US economy, and the liability events that follow it: lawsuits, regulatory enforcement actions, and incidents. Not just the submissions that reach our desk. US generative AI lawsuits are up more than 150% from 2025 to 2026, per Testudo’s own lawsuit data. The outside record moves the same way. Documented AI incidents reached 362 in 2025, up 55% on the year before (Stanford HAI, 2026 AI Index Report), and 18 AI-related federal securities class actions were filed in the first half of 2026 alone, already more than the 17 filed in all of 2025 (NERA). ## A connected, always-current view of who is exposed to what. Most AI risk data sits in isolated records. A lawsuit here, an enforcement action there, an incident somewhere else. We connect them, so every new event lands in context: which system, which company, which deployments. We build it from public sources, so assessing a company’s exposure never requires access to its systems. ![Bullet point icon](https://www.testudo.co/content/assets/26cbe35e7f1acc1d2afc024530cfb884390924e6-26x25.svg?dpl=dpl_5qCkqg66w4dt4Run7BKLbRamnfy2) Rebrands and subsidiaries don’t break the picture. Exposure follows the real company, product, or model. ![Bullet point icon](https://www.testudo.co/content/assets/4220ec88393b06a85ca9de1911db06ecb453d5b7-26x25.svg?dpl=dpl_5qCkqg66w4dt4Run7BKLbRamnfy2) When a widely used AI system causes harm, exposure reaches everyone running it. Clients hear it from us first. ![Bullet point icon](https://www.testudo.co/content/assets/d5fb18ee446075597461e85443e4aecdf6648504-26x25.svg?dpl=dpl_5qCkqg66w4dt4Run7BKLbRamnfy2) Monitoring runs both ways: every new event against our clients, every new client against the record. ## AI Risk Engine Testudo’s AI Risk Engine is the underwriting platform behind our AI liability insurance for generative AI. At its core is a connected record of AI systems, the companies that deploy them, and the liability events that follow: lawsuits, regulatory enforcement actions, and incidents. The engine turns that record into the AI Risk Summary and AI Risk Score. Our underwriters use them to select and price AI risk, and clients use them to see exactly where their own exposure sits. From Lawsuit to Risk Selection Our unique view of risk is shaped by our proprietary **AI Risk Engine**: a system that requires **no invasive technical integration with a company to assess their exposure.** ![Diagram of Testudo's AI Risk Engine, showing how it scores and prices AI liability risk](https://www.testudo.co/_next/static/immutable/media/desktop-diagram.1h2d5b80lbo_9.webp) Always watching Tracks litigation, regulatory actions, and incidents so you don’t have to. Read in full Decisions rest on what filings and orders actually say, not on headlines. Connected Each new event lands in context: the systems, vendors, and companies it touches. Pressure-tested Our approach is tested against how real cases have resolved. Real-Time Risk Selection ## We underwrite AI risk without performing invasive technical audits or requiring certifications. **Model performance is a small slice of AI liability** Our lawsuit data shows that model performance failures, including hallucinations, account for a small minority of generative AI lawsuits in the US. **Liability exposure is driven by more than model performance: it comes from how and where AI is deployed.** Technology in service of distribution ## Sharp risk selection, delivered at broker speed. We deliver a bespoke **AI Risk Summary**, quote and bind service. Our **AI Risk Summary** gives each client an **AI Risk Score** and insights specific to what they actually deploy. We perform **Active Liability Monitoring** for our insureds to stay on top of fast-moving loss trends. Underwriting Technology for Frontier Risk ## The future of underwriting is AI assisted Insurance underwriting has historically been a manual process, often driven by human judgment and gut feel. However once guidelines, policies and pricing have been defined by specialist humans, there is an opportunity for AI to assist in underwriting processes. This should help us make decisions **better**, **faster**, **smarter**, more **efficient**. This ultimately lets us serve clients more effectively. --- ## More from Testudo - [Site index for agents](https://www.testudo.co/llms.txt) - [How to use Testudo (agent instructions)](https://www.testudo.co/agents.md) - [Coverage summary](https://www.testudo.co/coverage.md) - [Sitemap](https://www.testudo.co/sitemap.xml)